🗳 U.S. election: Hong Kong market snaps win streak; Nikkei225 rallies

📌 Hong Kong markets snap 3-day win streak on U.S. election risk aversion

▪️ As Donald Trump takes the lead in the U.S. presidential race as of the time of writing, investors turn risk adverse amid concerns of potential tariffs on Chinese exports and its impact on global financial markets (South China Morning Post, 6 Nov).

▪️ At the lunch break, the Hang Seng Index (HSI) futures have fallen 2.6% to trade at the 20,453. With the moves in the futures, position taking was largely seen in HSI calls, with investors particularly active in LVNW and HOJW . Nonetheless, bearish investors were active in VIQW and NPMW put warrants.

📌 Nikkei225 rallies on the news

▪️ On the flipside, Japanese stocks rallied this morning on news of Trump's lead as investors see a Trump victory as expansionary and inflationary, meaning it could be less likely for the Federal Reserve to aggressively cut interest rates (Bloomberg, 6 Nov). The yen weakened against the Dollar while the Nikkei225 futures are currently trading 1.6% higher from yesterday afternoon's close.

▪️ With the moves in the futures, focus call warrant UKMW has gained over 20%, while focus put warrant JQPW has fallen over 12%.